Guidance to Apply Interim Safe Harbors for Purposes of Determining a Taxpayer’s Material Assistance from a Prohibited Foreign Entity; Other Prohibited Foreign Entity Guidance (Notice 2026-15)

Good Energy Collective, a nuclear policy and research organization, submitted an analysis highlighting the significant compliance costs and supply chain constraints associated with the prohibited foreign entity (PFE) rules for nuclear projects. They argue that while the policy goals are important, the current framework may disproportionately burden developers and suggest that a component-by-component schedule or phased approach is necessary to ensure the economic viability of new nuclear power plants.

Lawyers for Good Government (L4GG), a nonprofit organization, submitted comments regarding the proposed regulations for prohibited foreign entity (PFE) restrictions. They advocate for specific clarifications and safe harbors to ensure that "Elective Pay" entities (such as state and local governments and nonprofits) can navigate the new compliance requirements without undue burden or retroactive application.

The American Public Power Association (APPA) is urging the Treasury and IRS to provide specific guidance on the new foreign-entity-of-concerns rules to ensure energy projects and nuclear tax credits are not unnecessarily blocked. They advocate for treating publicly offered debt as not issued to specified foreign entities and for applying the debt test prospectively to debt issued during the taxable year.